U.S. CFTC moves to stop Kalshi from canceling trades as ordered by Michigan court
The federal derivatives regulator, which oversees trading at Kalshi, argued it was inappropriate for Michigan to “bully” the firm into reversing trades.
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Summary
- Kalshi was about to reverse prediction market trades made by its Michigan customers in answer to a court order, but the U.S. Commodities Trading Commission stepped in and argued that Michigan had no right to interfere with contracts.
- The CFTC halted the company from fulfilling the court order, which stemmed from the state’s recent efforts to halt sports trades that its attorney general said represents illegal gambling.
- Michigan is the latest of several states in which the U.S. derivatives regulator is defending its legal authority over prediction markets.
